TCR_Public/990119.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
  Tuesday, January 19, 1999, Vol. 3, No. 12


2CONNECT EXPRESS: BDO Seidman To Audit Financial Statements
ACCESS BEYOND: Committee Objects To Emerald Asset
ACCESS BEYOND: Committee Seeks Chapter 11 Trustee
ACCESS BEYOND: Seeks Extension of Exclusive Periods
ARROW AUTOMOTIVE: Committee Taps PricewaterhouseCoopers

CADET MANUFACTURING: Bankruptcy Filing Seeks Breathing Room
COLOR TILE: Seeks Extension of Exclusive Periods
CRIIMI MAE: DCR Removes Transactions From Rating-Watch Down
CROWN BOOKS: Panel Files Suit To Void Lender Liens
FASTCOMM: Second Amended Plan of Reorganization

GITIC: China Courts Declare GITIC Bankrupt
H&N ELECTRIC; Files For Chapter 11 Reorganization
HOMEPLACE STORES: Substitution of Attorneys for Committee
IFUSION COM: Chapter 11 Plan of Liquidation
INT'L WIRELESS: Seeks Exclusivity Through Confirmation

MOLTEN METAL: Trustee Seeks Nod For $6 Million Payout
PERK DEVELOPMENT: Taps Special Tax Accountants
PHYSICIANS RESOURCE: Announces Further Developments
LIBERTY HOUSE: Buyer Of Debt Is Busy
MCCULLOCH: Strategic Distribution Suffers Loss of $1.1M

PHP HEALTHCARE: Committee Backs Rejection of Contract
SGL CARBON: Official Committee of Unsecured Creditors
SYQUEST TECHNOLOGY: Seeks To Employ Investment Banker

Meetings, Conferences and Seminars


2CONNECT EXPRESS: BDO Seidman To Audit Financial Statements
At the time of the 2Connect Express Inc.'s initial public
offering, the company's balance sheet for the fiscal year
ended December 31, 1996 and the related statements of
operations and deficit accumulated during the development
stage, shareholders equity and cash flows for the period
from April 19, 1996 (date of inception) to December 31,
1996 were audited by the independent accounting firm of
KPMG LLP, formerly known as KPMG Peat Marwick LLP ("KPMG").
KPMG expressed its unqualified opinion as to such financial
statements of the Company in its report dated February 20,
1997, except as to the last paragraph of Note 9, which is
as of May 5, 1997.

On November 21,1997, the Company changed its fiscal year
end to the Saturday nearest January 31, in conformity with
the National Retail Federation fiscal calendar. The Company
filed a Form 8-K on December 3, 1997 giving notice of this
change and the Company's intent to reflect the fiscal year
transition on Form 10-KSB for the year ended January 31,

The Company filed for bankruptcy on January 12, 1998.
Subsequently, the U.S. Bankruptcy Court, Southern District
of Florida, did not authorize the expenditure of the
Company's funds for an audit. Therefore, the Company
was unable to engage KPMG to complete an audit of the
Company's financial statements for the one month ended
January 31, 1997 and the year ended January
31, 1998. As a result of the Company's failure to have an
audit completed, the Company did not file a Form 10-KSB for
such fiscal year.

There were no disagreements during 1996 or 1997 or any
subsequent interim periods to such years between the
Company and KPMG on any matter of accounting principles or
practices, financial statement disclosure or auditing
scope or procedure, which disagreement, if not resolved to
the satisfaction of KPMG would have caused it to make
reference to the subject matter of the disagreement in its
report. Since its emergence from bankruptcy, the Company
contacted KPMG regarding its audit. However, KPMG has
declined to stand for reelection which was confirmed by its
letter to the Company dated January 8,1999.

On January 7, 1999, in anticipation of KPMG's declination
to stand for reelection, the Company engaged BDO Seidman,
LLP ("BDO Seidman") as the successor independent auditor,
which engagement was approved by the Board of
Directors of the Company on the same date. BDO Seidman is
an international accounting and consulting organization
with three offices in Florida. BDO Seidman was engaged on
January 7, 1999 to audit the Company's financial
statements for the one-month ended January 31, 1997 and the
fiscal year ended January 31, 1998.

The Merger described in Item 1 of the Company's Form 8-K
for the event dated December 31, 1998 filed on January 8,
1999 results in a change of control of ownership of the
Company. BDO Seidman has advised the Company that the
financial statements of the Company for the years prior to
1999 would include only the results of operations of Bobby
Allison as a result of the change in control. Consequently,
BDO Seidman has been engaged to audit the Company's
financial statements for the year ended December 31, 1998
which will be the historical financial statements of Bobby
Allison. The Company anticipates filing a Form 10-KSB for
each such years as soon as the audits are available.

ACCESS BEYOND: Committee Objects To Emerald Asset
The Official Committee of Unsecured Creditors of Access
Beyond Technologies, Inc. n/k/a Hayes Corporation (Hong
Kong) Limited, et al., objects to the debtors' application
to retain and employ Emerald Asset management, LLP.

The Committee objects to the employment of this auctioneer
only to extent of its limited concern that confirmation is
received from Volpe, Brown Whelan & Company that it has no
claim to a commission from the Emerald auction.  In the
event that Volpe Brown makes a claim, the Committee
reserves the right to object to the Emerald application in
order to avoid duplication of compensation.

Volpe, Brown is the debtors' investment banker, and
although the debtors have advised the committee that they
do not believe that Volpe Brown is entitled to a commission
if Emerald auctions the assets, the Committee is concerned
about this issue because the debtors and Volpe Brown are in
disagreement over whether commissions should be paid to
Volpe Brown in connection with a sale of the intellectual

ACCESS BEYOND: Committee Seeks Chapter 11 Trustee
The Official Committee of Unsecured Creditors seeks entry
of an order authorizing the Committee to file under seal
its emergency motion for appointment of a Chapter 11
Trustee, or in the alternative, for conversion of Chapter
11 cases to cases under Chapter 7.  The Committee has lost
confidence in the debtors' Boards of Directors to properly
manage and oversee the liquidation and therefore has
requested the appointment of a Chapter 11 trustee or, in
the alternative, the conversion of the case.

The Committee seeks authority to file the Trustee Motion
under seal due to confidentiality agreements with the
debtors.  Because the Trustee motion contains information
that the debtors may assert is confidential, the Committee
seeks authority to file it under seal.

ACCESS BEYOND: Seeks Extension of Exclusive Periods
Access Beyond Technologies, Inc. n/k/a Hayes Corporation
(Hong Kong) Limited, et al., seeks an order extending the
exclusive periods to file a plan and solicit acceptances

The debtors seek to extend the period during which the
debtors have the exclusive right to file a chapter 11 plan
or plans through and including June 7, 1999, and to extend
the period during which the debtors have the exclusive
right to solicit acceptances thereof and together with the
Exclusive Filing Period through and including August 5,

The debtors anticipate that, if sufficient consideration is
realized by the sale of their assets, they will file a
liquidating plan.  Until the outcome of the auction of
their machinery equipment and inventory ant their Norcross,
Georgia facility and the sale of their assets in bulk or
part, the debtors will not be in a position to propose and
file a confirmable Chapter 11 plan.

ACME METALS: Alpha Tube Seeks Independent Committee
The Unofficial Committee of Alpha Tube Trade Creditors
submits a notice of filing of statements in support of a
motion for appointment of an independent committee of
creditors of Alpha Tube Corporation.  The following
creditors of Alpha a Tube Corporation have joined the Alpha
Tube Creditors in expressing their support for the motion
of the unofficial Committee of Alpha Tube creditors for an
order directing the appointment of a committee of unsecured
creditors of Alpha Tube Corporation:
AK Steel Corporation, Delaco Steel Corporation, Interim
Personnel of Lima Inc., Marubeni America Corporation,
Pittsburgh Logistics Systems, Inc., Rouge Steel Company,
Weirton Steel Corporation, and Wheeling-Pittsburgh Steel

Each of the above-listed creditors filed a statement in
support of creation of a Committee of Unsecured Creditors
for Alpha Tube Corporation.

ARROW AUTOMOTIVE: Committee Taps PricewaterhouseCoopers
The Official Committee of Unsecured Creditors of Arrow
Automotive Industries, Inc. applies to the court for an
order approving the appointment of PricewaterhouseCoopers
as accountants and financial advisors to the Committee nunc
pro tunc to November 16, 1998.

The firm will investigate and assess, as the Committee
believes may be necessary and appropriate, certain
historical transactions, including, but not limited to ,
payments to officers, insider transactions and related-
party transactions, fraudulent transfers and preferences;

The firm will review and analyze and advise the Committee
concerning the debtor's weekly operating reports prepared
by The Recovery Group.

The firm will compare and contrast strategies of
liquidation, sale of assets, or sale of the debtor's
business, to determine the maximum potential for recovery
by the unsecured creditors'

The firm will review and assess business plans and proposed
plans or reorganization and advise the committee in
connection with the negotiation and formulation of a plan;
assist in the  development of financial information for
alternative plans of reorganization and participate in
negotiations on behalf of the Committee with the debtor and
debtor's counsel.

The firm will charge its normal hourly rates ranging from
$350-$400  per hour form partners to $60-$75 per hour for

CADET MANUFACTURING: Bankruptcy Filing Seeks Breathing Room
As reported in the Columbian on January 14, 1999 when Cadet
Manufacturing of Vancouver files papers in federal courtin  
Tacoma for bankruptcy protection it "changes the playing
field" in the company's battle to remain solvent in the
face of legal and financial challenges, says a local
bankruptcy specialist.

Jeff Meehan, an attorney with Landerholm Memovich Lansverk
& Whitesides, who has no interest in the Cadet case,
offered this "primer" on the process:

Effect on other litigation: "When a **bankruptcy** is
filed, an automatic "stay" goes into effect, halting all
pending claims against the debtor (Cadet). The phone
company can't even send out a collection notice threatening
to cut off service."

Meehan said it will stop the scheduled action Friday in
King County Superior Court in Seattle pertaining to a
possible class-action suit against Cadet.

"The state courts (including  county superior courts) no
longer have jurisdiction to hear it," he said.
Formulation of a plan: "The (bankruptcy) action gives the
debtor breathing  room of at least four months, maybe more,
to formulate a plan that will have to include how they will
deal with" the potential class-action suit and its debts.

"It's a strategic ploy to stop the litigation and shift the
field of play. The rules give the debtor more of a home
field advantage, at least in the initial few months of the
case. But it isn't the ultimate answer."

Plaintiff's next step: "If they are smart, they will remain
highly organized. An 'official unsecured creditors
committee' may be set up by them, if there's interest."
The unsecured creditors, Meehan said, would include owners
of recalled Cadet heaters.  He said attempts will be made
to contact such "creditors," asking if they wish to be
represented on the committee.

"The bankruptcy court will set a procedure for dealing with
the claims against Cadet," and could actually send the case
back to King County Court,  although that seems unlikely in
this case, he added.

"The official unsecured creditors committee will carry a
lot of weight. It can file its own reorganization plan (for
the judge to consider) after four months."

In any case, a reorganization plan presumably would be
worked out largely through negotiations with all parties
before it is presented to the bankruptcy court judge.
Close the business? Meehan said the bankruptcy court seeks
solutions that keep the debtor solvent.
"If Cadet can show in its plan ... that it wouldn't be able
to afford to send an electrician" to every heater owner and
replace all units,  "they won't be required to do so.
Public policy isn't to be punitive and force a company  
out of business. It's to give the consumer the benefit of
the bargain.

COLOR TILE: Seeks Extension of Exclusive Periods
Color tile, Inc. and its debtor affiliates seek an order  
extending, for a period of 180 days the debtors' exclusive
period s in which to file a plan or plans of reorganization
and to solicit acceptances thereof. The debtors seek to
extend the period to file a plan of reorganization from
January 11, 1999 through and including July 12, 1999; and
for the period to solicit acceptances from March 11, 1999
through and including September 7, 1999.

The debtors state that they are in the midst of a critical
period in these cases.  Until the litigation claims are
resolved or near resolution, the value of the debtor's
estates is highly speculative.  Until the conclusion of the
pending adversary proceedings, it is unlikely that the
debtor can effectively prepare a Chapter 11 plan at this

The debtor's' remaining assets consist of claims and causes
of action against pre-petition transferees and other third
parties.  The Creditors' Committee has been actively
pursuing these claims on behalf of the debtors.  The
Creditors' Committee and its professionals have evaluated
several thousand potential claims and commenced
approximately 2,500 adversary proceedings.  About 240 of
these actions are currently being actively litigated, and
will undoubtedly take several more months.  In the
meantime, the debtors believe that the ability to maximize
the value of such assets would be compromised if the
control of such litigation and these cases were disrupted
by filing of competing chapter 11 plans.

CRIIMI MAE: DCR Removes Transactions From Rating-Watch Down
Duff & Phelps Credit Rating Co. (DCR) has removed five
commercial mortgage-backed securities (CMBS) transactions
from Rating Watch--Down as a result of CRIIMI MAE Services,
L.P. (CRIIMI), a subsidiary of CRIIMI MAE Inc., being
replaced as the special servicer by Banc One Mortgage
Capital Markets, LLC (BOMCM).  All DCR-rated classes of the  
following transactions are removed:

    Asset Securitization Corporation, Series 1995-MD IV

    Asset Securitization Corporation, Series 1996-D2

    First Union-Lehman Brothers Commercial Mortgage Trust
II, Series 1997-C2

    Morgan Stanley Capital I Inc., Series 1998-WF1

    Nomura Asset Securities Corp., Series 1998-D6

    DCR had placed 13 transactions on Rating Watch--
Uncertain in connection with the bankruptcy filing by
CRIIMI MAE Inc. from its creditors  under Chapter 11 of the
United States Bankruptcy Code on October 5, 1998 (see  
DCR's press release dated October 5, 1998).  On October 8,
1998, DCR removed  DLJ Mortgage Acceptance Corp., Series
1995-CF2 from Rating Watch--Uncertain as  a result of the
controlling class for the transaction replacing CRIIMI as
the  special servicer (see DCR's press release dated
October 8, 1998).  On October  22, 1998, DCR changed the
watch status from 'Uncertain' to 'Down' for the  remaining
12 transactions following DCR's determination that the
bankruptcy* could potentially have negative implications
for the transactions.

Subsequently, Wisconsin Avenue Securities was removed from
Rating Watch--Down on December 2, 1998, following the
completion of the special servicing transfer from CRIIMI to
BOMCM (see DCR's press release dated December 2, 1998).
Furthermore, four additional transactions were removed from
Rating Watch--Down on January 5, 1999, following the
completion of the special servicing transfer from CRIIMI to
BOMCM for the following transactions: Mortgage Capital
Funding Inc., Series 1997-MC1, Asset Securitization
Corporation, Series 1996-D3, LB Commercial Mortgage Trust
II, Series 1996-C2, and Morgan Stanley Capital I Inc.,
Series 1998-WF2  (see DCR's press release dated January 5,

Although DCR has been informed that CRIIMI MAE Inc. intends
to appoint BOMCM as the special servicer for the remaining
three transactions currently on Rating Watch--Down, DCR has
not received notification from the trustees of these  
transactions that the transfers have been completed.  
Therefore, the following transactions remain on Rating

    Merrill Lynch Mortgage Investors Inc., Series 1995-C3

    Merrill Lynch Mortgage Investors Inc., Series 1996-C2

    Mortgage Capital Funding Inc., Series 1994-MC1

CROWN BOOKS: Panel Files Suit To Void Lender Liens
Crown Books Corp.'s official committee of unsecured
creditors filed a lawsuit against one of the company's
prepetition lenders seeking to void liens and security
interests on certain company assets.  The suit charges that
the liens and security interests of The CIT Group/Business
Credit Inc. on Crown's inventory and proceeds located in
New Jersey and Pennsylvania, which were used to secure
certain antecedent debts, are the product of preferential
transfers and must be avoided.  (Federal Filings Inc. 15-

FASTCOMM: Second Amended Plan of Reorganization
The debtor, Fastcomm Communications Corporation proposes a
Second Amended Plan of Reorganization under Chapter 11.

The plan provides for the treatment of each class of claims
and administrative expenses as follows:

Class 1  - Allowed Unsecured Nonpriority Claims of
Convertible Debenture Holders - impaired.  The holders of
Class 1 claims will be required to convert all outstanding
debentures within six months of the Effective Date.  Such
conversion shall be at the current market price.  In
addition, all penalties will be waived.

Class 2  - Allowed Unsecured Nonpriority Claims equal to or
less than $1,000 - impaired.  The holders of Class 2
claims, and any holders of Class 3 Allowed claims which
elect to reduce their claims to $1,000 will be paid in full
within 30 days from he Effective Date.

Class 3  - Allowed Unsecured Nonpriority Claims Greater
than $1,000 - impaired.  Holders of Class 3 Claims will
receive a combination of cash and securities in full
satisfaction of their claims.  An initial cash distribution
will be made equal to 12% of all Allowed Class 3 claims.
And an additional 12% will be reserved for disputed,
unliquidated and/or contingent claims. Class 3 holders will
then receive a debenture in the face amount of the
remaining 75% allowed claim.

Class 4  - Unsecured Nonpriority Contingent Claims of the
SEC, to the extent allowed - not impaired.  FastComm is
reasonably confident that this matter will reach
settlement.  The Reorganized debtor may not disburse more
than $50,000 toward such settlement without further order
of the court.

Class 5  - Allowed interests of equity security holders -
impaired.  The Equity security Holders shall retain their
respective Interests in FastComm as of the Effective Date.  
No cash dividends shall be paid until the earlier of full
redemption and/or conversion of the Class 3 Debentures or
expiration of the Class 3 Debenture Conversion Period.  The
Equity Security Holders acknowledge that the plan provides
of the dilution of their interests in the Reorganized
Debtor.  Specifically the proposed treatment of Class 3
Claims provides for the issuance or potential issuance of
additional stock in the debtor upon conversion of the Class
3 Debentures.  In addition, the plan includes a private
placement new equity investment of $1 million which would
also dilute the existing shareholders' interests in the
reorganized debtor.  The private placement contemplates the
issuance of warrants together with the stock purchases.  
The subsequent exercise of those newly issued warrants
would further dilute the existing shareholders' interests
in the reorganized debtor.  Current management of FastComm
will remain in place until further notice to all interested

Allowed Administrative Claims - Paid in full in cash on the
effective date if not previously paid pursuant to orders of

A hearing will be held on January 25, 1999 at 1:30 PM in
Courtroom III, Martin V. B. Bostetter, Jr. U.S. Courthouse,
at 200 South Washington Street, Third floor, Alexandria,
Virginia 22314 to consider the adequacy of the information
contained in the proposed Disclosure Statement.

FPA MEDICAL: Prudential Objects to Disclosure Statement
Prudential Insurance Company of America and certain of its
subsidiaries, including Prudential Health Care Plan Inc.
object to the proposed Disclosure statement with respect to
the first amended joint plan of reorganization of FPA
Medical Management, Inc. and its subsidiaries and
affiliates; dated December 29, 1998.

They state that the Disclosure statement should not be
approved because of two defects in the plan.  The plan
fails to identify a means of implementing the plan.  There
is no exit financing and the debtors have not secured
agreement with their payors, which will provide the
majority of the reorganized debtors' cash flow.  Secondly,
the plan affords broad releases to certain non-debtor
parties without any consideration whatsoever.

GITIC: China Courts Declare GITIC Bankrupt
Chinese courts have declared the investment arm of one of  
the country's richest provinces bankrupt, Hong Kong
newspapers reported Sunday.  The decision on the company
known as GITIC makes it communist China's biggest  
bankruptcy case ever.

Courts in the southern cities of Guangzhou and Shenzhen on
Friday accepted the application for bankruptcy protection
by Guangdong International Trust and  Investment Corp. and
three of its subsidiaries, said a report in the Hong
Kong edition of Wen Wei Po, a mouthpiece for the China's
Communist Party.

GITIC has $4.3 billion in debts and assets of only $2.6

It is the first non-banking financial firm to go bankrupt
since the founding of communist China in 1949. It also
involves more money than any previous Chinese bankruptcy,
Wen Wei Po quoted court president Lu Botao as saying.

"GITIC's bankruptcy according to law follows the principle
of survival of the fittest under a market economy and
accords with international practice,"  the Hong Kong
Standard quoted Lu as saying.

The proceedings will serve as a test case for China's legal
system in its handling of failed Chinese financial firms.
When the government dissolved failed financial institutions
in the past, it paid off creditors.

The court decision was read in Guangdong High People's
Court Saturday to  about100 foreign creditors and 50
domestic creditors.

The decision did not say how much of the debt much of which
is owed to foreign banks could be repaid, nor did it say
whether foreign creditors would receive the same treatment
as their Chinese counterparts.

GITIC, once one of China's most prominent financial
institutions, declared insolvency and closed down in
October after failing to repay foreign and  
domestic loans.

Its three failed affiliates are Guangxin Enterprises
Development, Gaungdong International Leasing and Gitic

As the investment arm of Guangdong, the fast-growing
province bordering Hong Kong, GITIC borrowed loans and
issued bonds overseas to finance local projects.  But it
also invested in stock and property deals that went sour.

The collapse of GITIC, China's second-largest trust
company, shook confidence in China's financial system.
International credit-ratings agencies have since downgraded
the overseas debt of many trusts.

At least three other state-backed companies also disclosed
their insolvency last week.

H&N ELECTRIC; Files For Chapter 11 Reorganization
As reported in the Journal Business Spokane on December 23,
1998, H&N Electric-Spokane Inc., a Spokane company that
sells and repairs electric motors, air compressors, and
pumps, has filed for reorganization under Chapter
11 of the U.S. Bankruptcy Code.

The company, located at 5511 E. Broadway, listed assets of
about $913,000 and liabilities of more than $1.1 million in
its filing here on Dec. 7. The company declined comment on
the reorganization and the factors leading to the filing.
Its attorney couldn't be reached for comment.  More than
half of the liabilities, about $738,000 worth, involved
creditors  holding unsecured claims, primarily for various
business expenses.

Almost $389,000 of the liabilities involved creditors
holding secured claims, including a pair of claims from
Sterling Savings Bank totaling more than $242,000.
Heavy equipment and accounts receivable make up the bulk of
the company's reported assets.

H&N Electric had revenue of about $3.9 million in 1996 and
$4.4 million in 1997, but its sales have dropped to about
$1.9 million this year, bankruptcy records say.

Joe Hodl and Gary Naccarato started the company here 18
years ago. As business increased, H&N opened offices in
Pasco, Wash., and Butte, Mont. Six years ago, the two men
decided to end their partnership and split the business.
Hodl took the Spokane operation, and Naccarato took the
Pasco operation. They shut down the Butte facility.

In June 1997, the company said it employed 53 people,
including five at Agri- Service--a Lind, Wash., company
that sells agricultural pumps. Copyright Northwest Business
Press Inc. Dec 23, 1998

HOMEPLACE STORES: Substitution of Attorneys for Committee
Dewey Ballantine, L.P. withdrew as counsel to the Ad Hoc
Committee of Preferred Shareholders.  McDonald, Hopkins,
Burke & Haber Co., L.P.A. is replacement counsel.

IFUSION COM: Chapter 11 Plan of Liquidation
The Bankruptcy Court for the Southern District of New York
approved the First Amended Disclosure Statement for the
First Amended Chapter 11 Plan of Liquidation for Ifusion
Com Corporation, the debtor.  The hearing to consider
confirmation of the plan shall be held on February 11, 1999
at 2/30 PM before the Honorable Prudence Carter Beatty,
Room 701, U.S. Bankruptcy Court, One Bowling Green, New
York , NY 10004-1408.

The treatment of Claims is as follows:
Class 1 - Secured Claims of the Funders are impaired - by
agreement the Funders have waived any distributions under
the plan.

Class 2 - priority non-tax claims are not impaired.  Each
holder shall be paid the full amount, without interest, in
cash from the Confirmation Account, when the Plan
Administrator, in consultation with the Committee
determines that sufficient funds exist for a distribution.

Class 3 - Priority tax claims - not impaired.  Paid from
the confirmation Account when the Plan Administrator in
consultation with the Committee determines that sufficient
funds exist for a distribution.

Class 4 - Showtime Allowed Secured Claim - not impaired.  
Paid from the escrow account, the amount of its Allowed
Secured Claim, up to $30,000.

Class 5 - General Unsecured Claims are Impaired.  The
holders of allowed general unsecured claims shall receive,
in full satisfaction, their pro-rata share of available
cash, in one or m ore distributions, after all senior
classes of claims have been paid in full, in accordance
with the plan.

Class 6 - Unsecured Claims of the Funders are impaired. No
distribution shall be made in consideration of a general
release granted in favor of the funders in behalf of the
debtor, the Committee and the debtor's estate.

Class 7 - Interests are impaired.  The holders of an
interest in the debtor shall not receive any distribution
under the plan.  All Class 7 interests are deemed canceled,
null and void and of no force and effect..  The holders of
Class 7 interests are deemed to have rejected the plan.

INT'L WIRELESS: Seeks Exclusivity Through Confirmation
International Wireless Communications Holding Inc. is
seeking a brief extension of the exclusive periods to file
a reorganization plan and solicit plan acceptances to
complete the plan confirmation process "well underway."  
The extension is being sought, "solely out of an abundance
of caution to maintain the Exclusive Periods through the
schedule contemplated for Plan confirmation and to
allow for some additional time if unexpected delays are
encountered."  The court has scheduled the confirmation
hearing on IWCH's second amended reorganization plan just
days after the hearing on BT Foreign Investment Corp.'s
motion to appoint an examiner to investigate several
prepetition transactions.( Federal Filings Inc. 15-Jan-99)

MOLTEN METAL: Trustee Seeks Nod For $6 Million Payout
Molten Metal Technology Inc.'s Chapter 11 Trustee is
seeking approval to distribute about $6 million in asset
sale proceeds to postpetition lender MMT Recovery LLC.  
Noting that funds will only be distributed if senior liens
on the wet waste assets as well as trustee and profession
carveouts are satisfied, the trustee reserved the right to
request disgorgement of any portion of the payout from the
lender needed to settle the above accounts.  As of the
motion date, Trustee Stephen Gray had received about
$10.7 million in sale proceeds. (Federal Filings Inc. 15-

PERK DEVELOPMENT: Taps Special Tax Accountants
The debtors, Perk Development Corporation and Brambury
Associates seek to employ Brovitz, Insero, Kasperski & Co.,
P.C., as their special tax accountants.  The debtors wish
to engage the firm to prepare the debtors' 1997 and 1998
tax returns and any tax compliance services related tot the
preparations of such returns. The firm has filed a $56,163
unsecured claim in both Perk's and Brambury's cases. The
firm has agreed o waive such claims as a condition to their
employment as special tax accountants.

The debtors will pay the firm between $5,900 and $8,850 for
the preparation of each tax return.  

PHYSICIANS RESOURCE: Announces Further Developments
Physicians Resource Group, Inc. (NYSE:PRG) announced that
the time period has expired during which NationsBank
had agreed not to take any action with respect to its $9.5
million loan to the Company due December 31, 1998 that is
in default.  The Company continues to conduct discussions
with NationsBank and the individual guarantors of the
NationsBank loan with the goal of obtaining an acceptable
arrangement to permit the Company to pursue its
restructuring.  However, no assurance can be provided
that NationsBank will not take action to enforce fully its
rights under its loan agreement with the Company.

PRG is a provider of physician practice management services
to eye care practices and operates ambulatory surgery

LIBERTY HOUSE: Buyer Of Debt Is Busy
As reported in the Honolulu Star-Bulletin on December 22,
1998 business is picking up for Aurel Capitol, LLC, the New
York investment firm that so far has acquired 56 claims
from vendors owed money in the Liberty House bankruptcy.

Aurel, which speculates on bankruptcy claims, bought the
Liberty House claims -- totaling $109,630 -- at an
undisclosed discount. A Manoa woman said she turned down an
offer of $40 for her $806 claim - - about 5 cents on the  

Aurel officers note that claims trading is common in
mainland bankruptcies, including the current Chapter 21
bankruptcy of department store chain Montgomery Ward.
Buyers hope to collect their claims at a higher rate at the
end of a bankruptcy, while sellers settle for less.

While Hawaiian Airlines, which emerged successfully from
bankruptcy in 1994, repaid its creditors in full with
shares of its stock, reorganizations often results in
repayment below face value of claims.

Aurel filed its first batch of 14 claim transfers, totaling
$39,397, in U.S. Bankruptcy Court on Dec. 7. The company on
Dec. 10 added 42 transfers totaling  $70,233.

Most of the Liberty House vendors choosing to sell their
claims -- ranging from several hundred to several thousand
dollars -- are mainland companies.  More than 5,000 claims
have been filed against Liberty House in its Chapter  
11 bankruptcy, claims that are on hold until the retailer
emerges from its reorganization with a court-approved plan
to repay its debts. Attorneys involved in the case say it
should be completed by June, more than a year after
Liberty House filed for bankruptcy protection last March.  
Copyright Hawaii Newspaper Agency Dec 22, 1998

MCCULLOCH: Strategic Distribution Suffers Loss of $1.1M
McCulloch Corp., an international manufacturer of gasoline-
powered and electric portable outdoor equipment, filed
chapter 11 this week, according to a newswire report.
Strategic Distribution Inc. announced yesterday that it has
incurred an estimated pre-tax loss of up to $1.1 million
because of the filing. McCulloch has not paid invoices due
to Strategic Distribution. That and the value of inventory
specially held for McCulloch totals about $1.1 million.
(ABI 15-Jan-99)

PHP HEALTHCARE: Committee Backs Rejection of Contract
The Official Unsecured Creditors Committee for PHP
HealthCare Corporation, debtor, supports the rejection of
the Employment Agreement with Jack M. Mazur for "cause".

SGL CARBON: Official Committee of Unsecured Creditors
The U.S. Trustee acting in SGL Carbon Corp.'s chapter 11
case has appointed an official committee of unsecured
creditors. The panel consists of the following creditors:
North Star Steel Co.; Ameristeel Corp.; SMI Steel Inc.; The
Timken Co. TAMCO Newport Steel Corp. Cascade Steel Rolling
Mills Inc.; Republic Engineered Steels Inc.; Conoco Inc.
(The Daily Bankruptcy Review and ABI Copyright c January
15, 1999.

SYQUEST TECHNOLOGY: Seeks To Employ Investment Banker
On February 1, 1999, at 2:00 PM, the Honorable Leslie J.
Tchaikovsky will hear the application of SyQuest Technology
Inc. to employ the firm of CIBC Oppenheimer Corporation as
its financial advisor during the pendency of this case.

Meetings, Conferences and Seminars

January 28-February 1, 1999
      38th Annual Southern District Meeting
         Royal Sonesta Hotel, New Orleans, Louisiana
            Contact: 1-423-971-1551

February 4-6, 1999
      Rocky Mountain Bankruptcy Conference
         Westin Tabor Center, Denver, Colorado
            Contact: 1-703-739-0800

February 18-21, 1999
      Annual Western District Meeting
         Monte Carlo Hotel & Casino Resort,
         Las Vegas, Nevada
            Contact: 1-702-382-9558

Febraury 28-March 3, 1999
      Norton Bankruptcy Institute I
         Olympic Park Hotel, Park City, Utah
            Contact: 1-770-535-7722

March 18-21, 1999
      Norton Bankruptcy Litigation Institute II
         Flamingo Hilton Hotel, Las Vegas, Nevada
            Contact: 1-771-535-7722

March 19, 1999
      Bankruptcy Battleground West
         Century Plaza Hotel, Los Angeles, California
            Contact: 1-703-739-0800

March 25-27, 1999
   Southeastern Bankruptcy Law Institute, Inc.
      25th Annual Southeastern Bankruptcy Law Institute
         Marriott Marquis Hotel, Atlanta, Georgia
            Contact: 1-770-451-4448

April 15-18, 1999
      Annual Spring Meeting
         J.W. Marriott, Washington, DC
            Contact: 1-703-739-0800

April 26-27, 1999
      Bankruptcy Sales, Mergers & Acquisitions
         The Mark Hopkins, San Francisco, California
            Contact: 1-903-592-5169 or   

April 28-30, 1999
      INSOL Bermuda '99 Conference of the Americas
         Castle Harbour Marriott Resort

April 30-May 4, 1999
      Annual Meeting and conference, including a one-day
      program on cross-border insolvencies
         Shangi-La Hotel, Bangkok, Thailand
            Contact: 011-66-2-233-0055

June 3-6, 1999
      Central States Bankruptcy Workshop
         Grand Traverse Resort, Traverse City, Michigan
            Contact: 1-703-739-0800

July 1-4, 1999
      Western Mountains Bankruptcy Law Institute
         Jackson Lake Lodge, Jackson Hole, Wyoming
            Contact: 1-770-535-7722
July 15-18, 1999
      Northeast Bankruptcy Conference
         Mount Washington Hotel & Resort
         Bretton Woods, New Hampshire
            Contact: 1-703-739-0800

August 4-7, 1999
      Southeast Bankruptcy Workshop
         The Ritz-Carlton, Amelia Island, Florida
            Contact: 1-703-739-0800

September 16-18, 1999
      Southwest Bankruptcy Conference
         The Hotel Loretto, Santa Fe, New Mexico
            Contact: 1-703-739-0800

December 2-4, 1999
      Winter Leadership Conference
         La Quinta Resort & Club, La Quinta, California
            Contact: 1-703-739-0800

The Meetings, Conferences and Seminars column appears
in the TCR each Tuesday.  Submissions via e-mail to are encouraged.  


S U B S C R I P T I O N   I N F O R M A T I O N     

Troubled Company Reporter is a daily newsletter, co-
published by Bankruptcy Creditors' Service, Inc.,
Princeton, NJ, and Beard Group, Inc., Washington, DC.  
Debra Brennan and Lexy Mueller, Editors. Copyright 1998.  
All rights reserved.  ISSN 1520-9474.  

This material is copyrighted and any commercial use, resale
or publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without prior written permission of the

Information contained herein is obtained from sources
believed to be reliable, but is not guaranteed.   
The TCR subscription rate is $575 for six months delivered
via e-mail. Additional e-mail subscriptions for members of
the same firm for the term of the initial subscription or
balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 301/951-6400.  
          * * *  End of Transmission  * * *